New Paraguay Leader to Rebuild Regional Ties

By

Ken Parks

Updated April 22, 2013 8:49 p.m. ET

BUENOS AIRES—Newly elected Paraguayan President Horacio Cartes will try to mend fences with his South American neighbors, who have ostracized the country after last year's contested impeachment of Fernando Lugo.

The Sunday election, which the tobacco and banking magnate won by a landslide, raises hopes that Paraguay will eventually be reinstated as a full member of South American trade bloc Mercosur and the Union of South American Nations, Unasur. Both organizations temporarily suspended Paraguay shortly after Mr. Lugo...